The Central Bank of Nigeria (CBN) has banned the use of foreign currencies for transactions within the domestic economy, News About Nigeria reports.
The CBN expressed concern over the increasing trend of individuals and corporate entities carrying out transactions using foreign currencies, as well as some institutions pricing their goods and services in foreign currencies and demanding payments in these currencies instead of the Nigerian Naira.
“The attention of the Bank has been drawn to the increasing use of foreign currencies in the domestic economy as a medium of payment for goods and services by individuals and corporations.
“It has also been observed that some institutions price their goods and services in foreign currencies and demand payments in foreign currencies rather than the domestic currency (the Naira), which is the legal tender in Nigeria,” the statement read in part.
The CBN pointed out the legal tender status of the Naira, as outlined in the CBN Act of 2007, which states that “the currency notes issued by the Bank shall be legal tender in Nigeria… for the payment of any amount.”
The Act further declares that any person found contravening this provision is guilty of an offence and shall be liable to a prescribed fine or six-month imprisonment upon conviction.
The prohibition outlined by the CBN applies to individuals and corporations engaged in domestic transactions, and any violation of this directive is subject to legal consequences.
However, the ban does not extend to foreigners, visitors, and tourists who are encouraged to continue using their cards for payments or exchanging their foreign currency for local currency through authorised dealers.
To ensure compliance and enforcement of this directive, the CBN has called on the general public to report any instances of contravention of the CBN Act to both the Economic and Financial Crimes Commission (EFCC) and the Central Bank of Nigeria (CBN).
